short term investment

High Net Worth Individual (HNWI) In India

In India, the percentage of High Net Worth Individuals (HNI or HNWI) have gone up in recent times, owing to a surge in business opportunities, foreign investments, and new-age digital entrepreneurs. This lead to a tectonic shift in the wealth management industry.

A one-dimensional approach to private wealth management can shunt the diversification of asset allocation, and the new-age Ultra HNWIs are willing to explore avenues with tech-enabled, holistic solutions that span an entire spectrum of financial services.

The Indian market for ultra HNWI investments is still very nascent and yet to be explored to its full potential. There is a wide range of investments for HNWIs that includes estate planning and tax planning, alternative investments, fixed deposits, treasury bonds, government and corporate bonds, etc. even structured philanthropy indicating a commonality when it comes to their investing modus operandi.

The Difference Between HNWI, Emerging HNWI and Ultra HNWI

HNI or HNWI Emerging HNWI Ultra HNWI
Individuals with more than Rs 2 crores investable capital Individuals with an investable surplus of Rs 25 lakhs to Rs 2 crores Individuals who have assets worth 200 crores and above.

The number of ultra-HNWIs in India has been growing at 12% CAGR.

What is KredX?

KredX is India’s leading invoice discounting platform, providing businesses and their suppliers with cashflow solutions while offering investors a unique opportunity to make low-risk and high-returns investment within a short time span. The alternative short-term investment product enables investors to invest in a brand-new asset class and get above-market returns at minimal risk.

A Profitable Solution for Investment & Portfolio Diversification

Embrace Portfolio Diversification with KredX

At the end of 2017, holding shares in businesses was the most favoured investment channel for Indian HNWIs, making up for almost a quarter of their assets. Cash, bonds, real estate, and equities accounted for over 21%. Most investments, including equity funds, are associated with a high level of risk, and therefore diversification of portfolio is required to maximise the returns. Invoice Discounting is a great opportunity to build a portfolio in a novel way for HNWIs seeking diversification in their investment plan. With KredX the HNWI portfolio strengthens to form a remunerative investment avenue at minimal risk to compensate for the deficiencies of the changing markets.

Why More HNWIs Are Making The Switch To KredX

KredX offers a reliable and definitive short-term investment option for HNWIs with minimal risk. Invoice discounting is a safe investment and a brand-new asset class with a healthy portfolio diversification at above-market returns and minimal risk in a short time frame. The entire process is fool-proof, wherein:

  • KredX monitors the security of every transaction through Escrow Accounts for both Businesses and Investors, separately.
  • All the important data points after evaluation by the KredX risk team are summarised in different reports at the vendor, enterprise, and deal level.
  • Pre-vetted and verified invoices are uploaded on the platform with credit score and reports for investors to make a sound investment decision.

The Pros Of Invoice Discounting For HNWI

Unique fixed-income decisive short-term investment

  • Strengthen your portfolio with maximum returns within 30-90 days
  • Profitable asset class for 12-20%* IRR
  • Crafting solutions to earn annualised returns in 30-90 days at low risk

Secured Risk Mitigation

  • Comprehensive business model with no execution or market risk
  • 360° credit risk analysis system at multiple stages
  • Multiple verifications of the relationship between borrower and enterprise

Eligibility Criteria:

To start investing in KredX, one has to be:

  • A citizen of India (can be an NRI too)
  • Should invest a minimum of 3 lakh INR
  • Should hold a valid PAN card

How It Works?

  • Investor signs up and logs into the KredX platform
  • Investor purchases the invoices of their choice
  • Funds are disbursed to the vendor’s bank account in 24-72 hrs
  • Upon tenure completion, enterprise credits invoice amount into an Escrow account
  • KredX then transfers this amount to the investor
  • Investor makes ~12-20% profit in 30-90 days

FAQs on High Net Worth Individuals:

Individual resident investors, HUF / Proprietorship registered in India Institutional investors, NRI investors (Provided you have an NRO account and comply with basic predefined KYC guidelines- Pan card and valid Indian address proof)